A class action lawsuit with Plastimet has been settled for slightly less than $4 million. The settlement, dated April 18th, was approved May 7th. The suit awards 9,400 people in the Hamilton, Ontario area who lived near the plant to receive $200 each. The suit follows a fire at the recycling plant that occurred in 1997.
According to a spokesman for the province of Ontario, the settlement is broken down into three components: the first is to pay damages to individuals, the second component is a business class fund that will cover damages to businesses affected by the fire; a third component is being set up to allow for any future damage claims that the province may yet be aware of.
The settlement also provides a contingency fund for individuals with extraordinary claims and sets aside money for business losses too.
Named as defendants in the suit were the province, the former region of Hamilton-Wentworth. the former city of Hamilton, landowner Frank Levy, Plastimet and Plastimet's owner Jack Lieberman and various tenants and former tenants of the Wellington Street North plant.
For business losses, an$850,000 fund has been established to cover business claimants who lost money during the fire.
Plastimet was a plastics recycling plant that caught fire July 9, 1997 and while it burned for four days, it released dioxins, acids and other chemicals into the air.
Hamilton will put $250,000in the settlement pool. This payment is not an admission of any liability and represents less than 7 per cent of the total pool of settlement funds.
Trebus said $1 million of the settlement comes from the Plastimet company, the only private company involved in the suit that had limited insurance coverage.